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The MEJT System: A New Tool for Day Trading the S 500 Index by Jeffrey Tennant

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8. Support – Overt and Covert

The ranges of the am MEJT and MEJT bars can act as support or resistance areas for days after the bars print. This is true even if an unfilled gap denies us an am signal. This is known as overt support or overt resistance.

On days in which the am MEJT and MEJT sequences are far apart and without overlap one can often find support or resistance at Fibonacci targets which can be generated from these bars. This is known as covert support or covert resistance.

In order to find these covert levels, one needs to create a Fibonacci grid. In TradeStation you can do that by going to the drawing menu and, under Fibonacci Tools, choose <Price Retracement Lines>. Dragging the mouse across the screen will create a Fibonacci ...

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